Nationwide has enhanced its green loan scheme, allowing mortgage customers to borrow up to £20,000 interest-free to improve energy efficiency.
- Loan amounts available range from £5,000 to £20,000 with up to 90% loan-to-value across 2 or 5-year terms.
- The previous limit of £15,000 saw a low uptake, prompting this increase and removal of a six-month waiting period for new customers.
- The initiative aligns with Nationwide’s report highlighting the need for financial support in home decarbonisation, with homes accounting for roughly 15% of UK greenhouse gas emissions.
- Graham Lloyd, Nationwide’s head of strategy and sustainability, emphasizes collaborative efforts with the government to meet the 2050 net-zero target.
Nationwide Building Society has enhanced its interest-free green loan offering, increasing the maximum available amount to £20,000. This new limit is part of Nationwide’s ongoing efforts to support mortgage customers in improving their homes’ energy efficiency. Customers can now borrow between £5,000 and £20,000, with the flexibility of loan-to-value ratios up to 90% over 2 or 5-year terms.
Initially set at £15,000 in June 2023, the former ceiling saw limited interest, culminating in merely 1,900 completed applications by September of the same year. In response, Nationwide has not only increased the loan cap but also abolished the previously mandatory six-month waiting period for new applicants. This strategic adjustment aims to stimulate greater homeowner engagement with the scheme.
This expansion coincides with a broader environmental commitment, underscored by Nationwide’s recent report titled “How low-cost finance supports the greening of UK homes.” The report addresses the crucial role of residential properties in contributing approximately 15% of the nation’s greenhouse gas emissions. It presses the necessity of retrofitting as intrinsic to meeting the ambitious 2050 net-zero target.
The report’s findings call for governmental intervention to foster energy efficiency upgrades, outlining that while financial tools like loans are vital, they represent only a fragment of the solution. Nationwide’s call for stronger governmental action includes proposals for public awareness campaigns, the establishment of a National Retrofit Hub, and enhanced collaboration with lenders.
Echoing these sentiments, Graham Lloyd, Nationwide’s head of strategy and sustainability, argues for a united effort: “We believe the UK’s 2050 net-zero target can only be met through incentivising people to invest in their homes. As a mutual, we have chosen to make a difference, which is why we’re making it as easy and attractive as possible for our mortgage customers to retrofit their properties. But much more needs to be done and we need both the government and businesses to step in and step up to create meaningful progress.”
Nationwide’s expanded green loan initiative underscores the critical need for comprehensive collaboration to achieve the UK’s decarbonisation goals.
